Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(Print or Type Responses)
1. Name and Address of Reporting Person *
JAMES WILLIAM E
  2. Issuer Name and Ticker or Trading Symbol
PEABODY ENERGY CORP [BTU]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
C/O ROCKPORT CAPITAL PARTNERS, LLC, 160 FEDERAL STREET, 18TH FLOOR
3. Date of Earliest Transaction (Month/Day/Year)
11/19/2007
(Street)

BOSTON, MA 02110-1776
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock (1) 11/19/2007   M   28,082 A $ 3.3001 29,943 D  
Common Stock 11/19/2007   S   246 D $ 50.13 29,697 D  
Common Stock 11/19/2007   S   400 D $ 50.14 29,297 D  
Common Stock 11/19/2007   S   400 D $ 50.15 28,897 D  
Common Stock 11/19/2007   S   600 D $ 50.17 28,297 D  
Common Stock 11/19/2007   S   1,500 D $ 50.18 26,797 D  
Common Stock 11/19/2007   S   1,700 D $ 50.19 25,097 D  
Common Stock 11/19/2007   S   2,800 D $ 50.2 22,297 D  
Common Stock 11/19/2007   S   1,700 D $ 50.21 20,597 D  
Common Stock 11/19/2007   S   1,700 D $ 50.22 18,897 D  
Common Stock 11/19/2007   S   400 D $ 50.23 18,497 D  
Common Stock 11/19/2007   S   200 D $ 50.24 18,297 D  
Common Stock 11/19/2007   S   100 D $ 50.27 18,197 D  
Common Stock 11/19/2007   S   500 D $ 50.28 17,697 D  
Common Stock 11/19/2007   S   500 D $ 50.29 17,197 D  
Common Stock 11/19/2007   S   800 D $ 50.3 16,397 D  
Common Stock 11/19/2007   S   154 D $ 50.31 16,243 D  
Common Stock 11/19/2007   S   300 D $ 50.33 15,943 D  
Common Stock 11/19/2007   S   14,082 D $ 51.5 1,861 D  
Common Stock               7,520 I By Trust

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) (1) $ 3.3001 11/19/2007   M     28,082 11/19/2007 05/19/2008 Common Stock 28,082 (2) 175,000 (3) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
JAMES WILLIAM E
C/O ROCKPORT CAPITAL PARTNERS, LLC
160 FEDERAL STREET, 18TH FLOOR
BOSTON, MA 02110-1776
  X      

Signatures

 William E. James By: Bryan L. Sutter, Attorney-in-Fact   11/20/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) On October 31, 2007, Peabody Energy Corporation distributed, as a pro rata stock dividend, all of the shares of its wholly-owned subsidiary, Patriot Coal Corporation, to holders of record of Peabody Energy common stock as of the close of business on October 22, 2007 (the "spin-off"). Effective upon completion of the spin-off, the Compensation Committee of the board of directors of Peabody Energy adjusted outstanding equity awards under existing stock plans, including outstanding stock options, to preserve the pre-spin-off intrinsic value of such awards. Accordingly, the number of shares of common stock underlying each option was increased by multiplying the number prior to the spin-off by 1.082524 and the exercise price was decreased by multiplying the exercise price prior to the spin-off by 0.923767.
(2) Not applicable.
(3) Does not include an additional 31,745 options with different expiration dates and exercise prices.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.